What's news

Aviation

New direct flight to Mauritius launched

A new direct weekly flight is being launched by China Southern Airlines on June 27, connecting south China's Shenzhen with Port Louis, the capital of Mauritius.

The flight will take off at 11pm every Friday and arrive in Port Louis at 4.30am the following morning, according to the China office of Mauritius Tourism Promotion Authority.

The return flight will leave at 7.30 am on Saturdays, arriving in Shenzhen at 9pm. The service adds to three existing direct flights between Hong Kong, Beijing and Shanghai and Mauritius.

Company

StarTimes eyes African growth

Private media group StarTimes is targeting 20 million digital TV subscribers in Africa in the next five years, a company official said.

"We are confident on growth as several African countries are planning to shift from analog to digital TV. We plan to roll out our digital programs to 30 African nations in the next five years," said Pang Xinxing, the chief executive, denying reports the company was facing financial problems.

Ma Yan, deputy governor of the Beijing branch of the Export-Import Bank of China, confirmed it has provided a 1 billion yuan ($163 million) loan to help the firm expand its presence in African broadcasting since 2012, and recently approved another $60 million loan for further expansion.

Industry

Nation to innovate with integrated circuits

China will make significant innovations in the integrated circuit industry by next year and build a financing platform and policy environment suitable for the sector's development, the Ministry of Industry and Information Technology said on Tuesday during a news conference on national integrated circuit industry development guidelines. By next year, the industry's sales will top 350 billion yuan ($56.8 billion), according to the ministry's guidelines.

Finance

Investor program extended to France

China has officially granted an 80 billion yuan ($12.9 billion) quota of investment to France under the Renminbi Qualified Foreign Institutional Investor program, the China Securities Regulatory Commission says.

France is the second European country to gain RQFII quota after the United Kingdom.

RQFII, launched in 2011, allows foreign investors to invest offshore yuan in Chinese stocks, bonds and money-market products. Investors in Hong Kong, London, Singapore and France can now apply for the program.

Insurance premiums up 26% in first 5 months

Chinese insurers' contract premiums rose 26.1 percent year-on-year to reach 976.57 billion yuan ($158.4 billion) in the first five months of this year, according to data released by the China Insurance Regulatory Commission on June 25. Property insurance premiums increased 16.8 percent, and life insurance premiums rose 31 percent.

Investment

Authorities scrap curbs on foreign inflow

The central government is scrapping legal and financing curbs on some foreigners investing in businesses outside banking, officials said on June 24. As part of sweeping financial reforms, the government is cutting red tape to reduce central planning and align the country's economy more closely with free markets. The Ministry of Commerce said it would lift limits on the size of foreigners' initial investments and abolish the time and currency curbs on such activity.

CIC to 'improve' running of overseas investments

China Investment Corp, the nation's $575 billion sovereign wealth fund, is improving how it manages overseas investments after auditors said mismanagement led to losses.

The fund has drafted plans to rectify issues identified by the National Audit Office and analyzed the causes, CIC said in a statement.

KFC plans major China makeover

KFC, China's largest international fast-food chain, is revamping its 130 restaurants in the country, and plans to offer better Wi-Fi and mobile facilities at the outlets to attract more customers.

Its new store designs include off-white and gray walls decorated with modern paintings.

They will also have wooden tables and areas separated by plants and glass, creating the atmosphere of a social hangout as opposed to a traditional fast-food chain, said Zhao Li, general manager of Beijing KFC.

The new "dining room" concept aims to make the space more homely, where consumers can dine, chat and surf online without being interrupted, he said. The chain is also introducing new employee uniforms and electronic menus.

Auto

Tax cut for buyers of alternative-fuel cars

The government is expected to announce a sales tax exemption for alternative-fuel vehicles in July, the Shanghai Securities News reported on June 24, citing insiders. The current tax for such vehicles is 8.5 percent. An official with the State Administration of Taxation said in an interview in May that the authorities were studying a tax exemption for these vehicles. Removal of the tax is expected to spark sales.

Executives replaced after sales slump

Great Wall Motor Co, China's largest maker of sport-utility vehicles, has replaced three of its top executives after a sales slump.

The company has replaced Kang Guowang, previously in charge of domestic sales, Xing Wenlin, who oversaw international sales, and Liang Xinlu, previously in charge of buying component.

Resources

Rare earth production quotas unchanged

China has set mining quotas for heavy rare earths and tungsten at the same levels as last year.

As much as 17,900 metric tons of heavy rare earths and 89,000 tons of tungsten can be mined this year, according to the Ministry of Land and Resources.

Natural gas imports via pipeline break record

China's natural gas imports via pipeline rose to a record high in May as the government sought to diversify its supply sources of the fuel. Shipments increased for a second month to 2 million metric tons in May, said the General Administration of Customs in Beijing, an annual rise of 27 percent.

Supplies from Turkmenistan, which accounted for 88 percent of imports last year, climbed in May, 20 percent higher than a year earlier.

Petrol, diesel prices rise

Retail prices of petrol and diesel were raised by the National Development and Reform Commission from June 24, by 165 yuan a metric ton ($26.80) and 160 yuan a ton, respectively.

The adjustment means the benchmark retail price of gasoline will increase by 0.12 yuan a liter and that of diesel by 0.14 yuan a liter, the Commission said.

China Daily-Agencies

(China Daily Africa Weekly 06/27/2014 page18)